Section: CORPORATE POLICY

Subject: POLICY ON OPERATIONAL CASH ADVANCE REQUISITION, ISSUANCE OF & LIQUIDATION – Using
Cash Advance Form

1.0 Policy Statement

It is the policy of the company to grant Operational Cash Advance to any Division Head to defray the necessary
expenses incurred while performing his/her duties or his/her key personnel duties on official business or for
purchases of items requiring cash outlay.

2.0 Objectives
 To document top management directives and provide general guidelines in the implementation of operational
cash advance requisition, issuance and liquidation.
 To clearly communicate policy on this subject to all departments, business units and employees.

3.0 Scope
This corporate policy is applicable to Greenfield Development Corporation and Greenfield Infrastructure
Resources Management Inc.

4.0 Definition of Terms

Operational Cash Advance (OCA) – refers to cash given to Division Head to defray the necessary expenses
incurred while performing his/her duties or his/her key personnel duties on official business or for
purchases of items requiring cash outlay.

Liquidation – detailed listings of the nature of expenses incurred using operational cash advances from the
company.

Unliquidated Operational Cash Advance – refers to the outstanding amount of cash advance not filed for
liquidation within or beyond the prescribed period of 5 working days from the date of issuance of operational
cash advance.

Mingling of OCA - committed when an employee with two or more operational cash advances for different
authorized purposes/activities pool them together and then use the same authorized purposes/activities that do
not correspond to the original intended purposes/activities as stated on the request for operational cash
advance. (e.g. OCA for purchase of items and another OCA for training were used for purchase of items alone.)

Co–mingling of OCA – committed when two or more employees with their own respective operational cash
advances intended for different purposes /activities pool them together and then use the same for authorized
purposes/ activities that do not correspond to the originally intended purposes/activities as stated on the request
for operational cash advances. (e.g. employee A with OCA for training & employee B with OCA for
representation, both used the cash advances for marketing and promotional activities).

Misappropriation of OCA – is the fraudulent use and disposition of cash advances for unauthorized purpose/
activity or when the same are used for personal gain to the prejudice of the company.

5.0 Operational Cash Advance Requisition and Issuance

Operational Cash Advances can only be processed thru an inter-office memorandum duly approved by the VP-
Finance, VP – GIRMI, and Executive Vice President with the specified subject, purpose, amount and name of
payee/s. Once approved, an Operational Cash Advance Request Form shall be prepared by the Division Head
who’s requesting such payment or Key Personnel with the approval of the Division Head. Notwithstanding,
regardless of the requestor, the liquidation of the OCA shall be the responsibility of the Division Head.

The Top level management approval of cash advances is hereby assigned based on the amounts as follows:
1. P 30,000 & below - VP for Finance
2. more than P 30,000 – Executive Vice President

The approved OCA request will be forwarded to accounting department for the verification of unliquidated OCA
and preparation of Accounts Payable Voucher.

As a general rule, no further cash advance will be released to the Division Head with existing unliquidated
OCA.
 Provided that, Division Head maybe granted an exemption from the foregoing rule if the Division Head secures
a request of extension (in form of memorandum) duly approved by the VP – Finance and Executive Vice
President. Requested date of liquidation must be specified.

Approved OCA request shall be forwarded to the treasury department for check preparation. The OCA check
shall be named only to the Division Head. Using other name or third party will not be allowed.

As a general rule, the encashment of check shall be the responsibility of Division Head. However, the
responsibility maybe delegated to the Treasury Officer provided that, written authorization for the encashment
has been submitted by the Division Head. In addition, cash from the encashed check shall be under the custody
of the Treasury Officer.

All requests for fund withdrawals shall be submitted to the Treasury Head thru cash release form at least a day
before the intended withdrawal date. The cash release form shall be jointly signed by the Division Head,
Finance Controller and VP – Finance. Failure to sign whoever the aforementioned signatories will render the
withdrawal void.

6.0 Operational Cash Advance Liquidation

All liquidation report must be filed to the audit department within the prescribed 5 working days from the date of
Cash released (for partial liquidation) or receipt of check (for full liquidation).

If the Division Head fails to liquidate and after a reasonable opportunity show cause has given, the written
consent to penalize for failure to liquidate cash advances shall be imposed.

Failure to comply with this policy, Division Head will be dealt with in accordance with the following schedule of
penalties:
Offenses and their corresponding sanctions
1 2 3 4
Written reprimand 3 days suspension & 7 days suspension Termination &
& Deduction of Deduction of & Deduction of Deduction of
unliquidated OCA unliquidated OCA unliquidated OCA unliquidated OCA

However, the Division Head may extend the 5 days liquidation period if he/she secure a request of extension
(in form of memorandum) duly approved by the VP – Finance and Executive Vice President. Requested date of
liquidation must be specified, failure to liquidate the cash advance on the extension date will be dealt with in
accordance with the following schedule of penalties above.

Mingling, Co-Mingling and Misappropriation of OCA as defined are not allowed. Offenses and their
corresponding sanctions are as follows:
Offenses and their corresponding sanctions
1 2 3 4
Written reprimand 5 days suspension 1 month suspension Termination

Attachments of Liquidation Report:

1. Approved Inter-Office Memorandum
2. Check Voucher
3. Approved letter of extension (only for extended liquidation)
4. Copy of Cash release form (only for partial liquidation)
5. Supporting documents of payments such as invoices, official receipt or acknowledgement receipt.
6. Green Field Development Corporation Official Receipt (if there is an excess amount in the cash
advance).

All liquidation reports arising from cash advances and with excess or unused cash must not be returned
immediately, the same shall be audited first to determine the actual and validated excess amount. The excess
amount of cash can be returned from the time Audit Department released the audited liquidation report.
Moreover, the same shall be considered liquidated upon the return of such excess and submitted to accounting
department.

7.0 Additional Policy Statement

Operational Cash Advance unused for its purpose or scheduled date of payment has been postponed or re-
scheduled within the 5-days liquidation period must be returned to the treasury officer.